February 18, 2025 /SemiMedia/ — The U.S. government is reportedly pushing Intel and TSMC to form a joint venture to develop multiple semiconductor foundry projects in the U.S. Sources say that Intel is considering splitting its semiconductor manufacturing division to partner with TSMC for advanced 3nm and 2nm chip production.

According to the proposal, U.S. officials have requested that Intel's existing and upcoming 3nm and 2nm fabs in the U.S. be included in the joint venture. TSMC will provide essential semiconductor engineering expertise and technology to ensure stable U.S. chip supply, supported by federal subsidies under the CHIPS Act.

With Intel’s foundry business already operating separately from other divisions, market expectations have long pointed to a potential spin-off. Industry experts suggest that this partnership could provide Intel with a significant cash influx, enabling it to focus more on design and platform solutions while offering reliable manufacturing alternatives to fabless companies seeking geographically secure options.